The Tax Rebate Adjustment Space Is Limited, The First Half Of The Export Of Mechanical And Electrical Products Is Not Optimistic.

In the first two months of this year, the monthly decline of China's mechanical and electrical products exports exceeded 20%.

Since last November, the export of mechanical and electrical products has been negative for 4 consecutive months.

As we all know, the export of mechanical and electrical products occupies half of China's export trade for a long time, and its export hindrants are undoubtedly a shadow of the prospect of our foreign trade this year.

In order to stabilize the export of our mechanical and electrical products and even the overall foreign trade situation, the voice of the industry again raised the export tax rebate rate of mechanical and electrical products.

Liu, director of the import and Export Department of the import and Export Chamber of China's mechanical and electrical products import and export department, said that the export tax rebate rate of electromechanical products in China still has room for further improvement; while Zhou Shijian, executive director of the China International Trade Association, suggested in a media interview that the state should speed up the recovery of full export tax rebates for mechanical and electrical products.

Then, can we raise the export tax rebate rate or even the full tax rebate can really help our mechanical and electrical export enterprises out of the current "cold winter"?

Mechanical and electrical products export tax rebate raised space limited

In accordance with international practice, many countries in the world have implemented tax refund policies for export enterprises in order to avoid double taxation on export enterprises.

In China, although the export tax rebate rate of some mechanical and electrical products has been increased four times in China since last year, overall, 45% of the mechanical and electrical products in China still fail to enjoy full tax rebate policy.

Li Jian, a researcher at the Ministry of Commerce and international trade and Economic Cooperation Research Institute, believes that China's export rebate rate is indeed up to the present level, but its range is limited.

According to the state's latest notice of raising the export tax rebate rate for mechanical and electrical products, the export tax rebate rate for machine tool products is 14% to 17% in terms of subdivision products, the tax rebate rate for marine spare parts is 17%, the export tax rebate rate for agricultural machinery products is 13% to 14%, the export tax rebate rate for packaged products is 14%, while the export tax rebate rate for semi-trailer products is 14%.

Li Jian said that although raising the export tax rebate rate can stabilize China's export of electromechanical products in the short term, in the context of the financial crisis, China's long-term plan to maintain steady development of foreign trade should not be overly hoped for in terms of exchange rate and tax rebate.

Moreover, China's export tax rebate may also lead to some negative effects, such as providing space for some export enterprises to compete to lower prices, triggering more international trade frictions and expediting the export of "two high and one capital" products.

Export situation of mechanical and electrical products in the first half is not optimistic.

Just in January 1st of this year, China has just raised the export tax rebate rate of some mechanical and electrical products, some of which have reached the top 17% tax rebate rate. However, in the first two months of this year, the export of mechanical and electrical products in China still showed a sharp decline. This shows that the increase of export tax rebate rate has limited effect on promoting the export of mechanical and electrical products.

Li Jian believes that in the financial crisis, the lack of external demand is the main external cause of the export of electromechanical products in China.

On the one hand, due to the international financial crisis, the import demand of the United States, European Union and Japan is insufficient. The three parties directly or indirectly digest nearly 60% of our export mechanical and electrical products. On the other hand, due to the lagging effect of the financial crisis, the speed of economic decline in emerging markets and developing countries is also accelerating, and its import demand for mechanical and electrical products is also in the doldrums.

As far as internal reasons are concerned, financing and processing trade policies are the two bottlenecks restricting the export growth of China's mechanical and electrical products.

It is gratifying to note that in order to promote the export trade of mechanical and electrical products in China, Yao Jian, spokesman of the Ministry of Commerce, said publicly that China is further studying and promoting trade financing policies, and constantly improving its processing trade policy.

In improving the processing trade policy, first, the margin of processing trade Ledger has changed from real to idle, thus greatly reducing the financial burden of enterprises. The two is to further reduce the list of Restricted Commodities in processing trade, and the number of restricted commodities has decreased from the original 2400 to 500. Three, the relevant departments are actively promoting the domestic sales policy of processing trade commodities, including the study of the convenience of domestic sales, and the reduction of the capital interest rate of domestic sales.